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Senior Analyst - Sustainable Mobility Cape Town

Financial close reached for 13.5MW Lower Maguduza Hydro Power Project in Eswatini

28 Jan 2025

African Clean Energy Developments (ACED) and Energy Infrastructure Management Services (EIMS Africa) have announced the financial close and commencement of construction on the 13.5MW Lower Maguduza Hydro Power Project. This project, sponsored and developed by ACED, with the African Infrastructure Investment Managers (AIIM) managed IDEAS Fund and the Eswatini Public Service Pensions Fund (PSPF) as shareholders, marks a significant step towards Eswatini's energy independence and adoption of sustainable energy sources.

Magugua Hydro project in Eswatini

The collaboration between ACED and EIMS Africa has been instrumental in bringing the project to fruition. ACED will oversee construction management, while EIMS Africa will manage operations and maintenance, ensuring the project's long-term success.

All energy generated will be sold to the Eswatini Electricity Company (EEC) under a Power Purchase Agreement (PPA).
"We are incredibly proud to reach this milestone," said James Cumming, CEO of ACED.

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"This project not only strengthens Eswatini's energy security but also creates jobs and supports local development."

Standard Bank South Africa played a key role as the lead arranger, with Standard Bank Eswatini, Standard Bank South Africa, and PSPF providing debt financing.

The unwavering support of AIIM, Old Mutual Eswatini, and various advisory firms was crucial in achieving financial close.

Critical infrastructure

Sherrill Byrne, EVP for energy and infrastructure at Standard Bank, emphasised the project's importance in supporting Eswatini's transition to cleaner energy sources.

"This deal unlocks critical renewable energy development, reducing reliance on traditional forms of energy and promoting a sustainable future."

Masotja Vilakati, CEO of PSPF, highlighted the project's positive impact on job creation, industrialization, and income generation for the Fund.

This accomplishment adds to the impressive track record of ACED and EIMS Africa, who have collectively brought approximately 500MW of renewable energy projects to financial close in the past two years.

Their combined expertise and dedication solidify their position as leaders in renewable energy development and operation in South Africa and across the continent.